Question: FBA Rouen Production uses 2 0 0 disk break per month, each unit costs $ 1 0 0 . These disks are purchased from supplier

"FBA Rouen Production" uses 200 disk break per month, each unit costs $100. These disks are purchased from supplier AB that is 90 km away from FBA. The production manager estimates that the annual unit holding cost is 15% of the unit cost and the unit ordering cost is $25. Currently, the inventory policy is placing two orders per month along the year to satisfy the annual demand. Calculate: (Leave your answers with 2 decimals and use (.) as decimal separator.
a) Economic order quantity (EOQ)= Rponse
(1pt)
b) Number of orders if the manager orders by EOQ = Rponse
(1pt)
c) How much the company can save per year in stock management cost (do not consider the material cost) if it uses the EOQ? --> Saving = Rponse
(2pts)
d) Suppose that the mothly demands is multiplied by four. The EOQ will be multiplied by what factor? Factor = Rponse
(1pt)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!